Blog · Payroll Management
Texas Minimum Wage 2026: Rates & Rules
Texas's 2026 minimum wage is $7.25 per hour, since state law adopts the federal minimum wage rate by reference, per the U.S. Department of Labor.
Because Texas ties its wage floor directly to the federal rate, employers here track one fewer moving target than businesses in states with independent minimum wage statutes. But payroll compliance is still not simple, especially for companies with employees in Texas and other states with different rates and rules.
Texas Minimum Wage Rate Table
| Jurisdiction | 2026 Minimum Wage |
|---|---|
| Texas (adopts federal rate) | $7.25 |
| Federal minimum wage | $7.25 |
Overtime Rules in Texas
Texas has no separate state overtime statute, so employers follow federal FLSA rules: non-exempt employees earn 1.5x their regular rate of pay for all hours worked over 40 in a single workweek. There is no daily overtime trigger in Texas.
Paid Sick Leave and Family Leave
Texas does not require employers to provide paid sick leave, and there is no state paid family and medical leave (PFML) program. Employers that want to offer these benefits do so voluntarily, and should document the policy clearly in an employee handbook.
Tipped Wages and Local Ordinances
Texas follows the federal tip credit framework under the FLSA. Local minimum wage and paid-leave ordinances have faced preemption challenges in Texas, so employers should not assume a city rule overrides the state rate without confirming it first. Always check current tipped-wage and local ordinance details with the state labor office contacts before setting pay rates.
What This Means for Payroll Compliance
Even in a federal-minimum state like Texas, payroll compliance is not "set it and forget it." Employers with workers across multiple states need to apply the correct minimum wage and overtime rule to each work location, every pay period. Getting it wrong exposes the business to back-wage claims, liquidated damages, and Department of Labor penalties.
This is exactly the kind of multi-state complexity BEG's managed payroll service is built to absorb. We register in each state where you have employees, apply the correct rate and overtime rule automatically, and keep your filings current as rules change.
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BEG manages payroll at $25-$45 per employee per month, all-inclusive. Get an instant cost comparison for your business.
Frequently Asked Questions
What is the minimum wage in Texas in 2026?
Texas's minimum wage in 2026 is $7.25 per hour. Texas state law adopts the federal minimum wage rate by reference, per the U.S. Department of Labor.
Does Texas have its own overtime law?
No. Texas follows federal FLSA overtime rules: non-exempt employees earn 1.5x their regular rate for hours worked over 40 in a workweek.
Does Texas require paid sick leave?
No. Texas does not mandate paid sick leave or a state paid family and medical leave program, and several Texas cities have been barred from enforcing local paid sick leave ordinances.
Can Texas cities set a higher minimum wage?
Texas state law generally preempts local minimum wage ordinances for private employers. Always confirm current rules with the Texas Workforce Commission before assuming a city-level rate applies.
What should multi-state employers with Texas workers watch for?
Employers with staff in Texas and other states need to apply the correct rate per work location, since neighboring states may have higher minimums or different overtime triggers.
Anthony leads payroll solutions at Business Executive Group, a national managed payroll firm serving businesses across industries. BEG manages payroll at $25-$45 PEPM, all-inclusive, with deep expertise in compliance, multi-state filing, and industry-specific payroll requirements. Get instant pricing at beghr.com.
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